US treasury auctions off 30 year bonds at 2.049%
Tail of of -1.3 basis points
- High yield 2.049%
- WI level 2.062%
- Dealers take 12.29% versus the six month average of 18.1%
- Bid to cover 2.36x vs six month average of 2.31x
- Directs 17.17% versus six month average of 19.1%
- Indirect 70.55% versus six month average of 62.7%
Auction grade: B+
The U.S. Treasury auctioned off $24 billion of near the 30 year bonds at a high yield of 2.049%. That compares favorably to the WI yield of 2.062% at the time of the auction (tail of -1.3 basis points).
The foreign demand was a strong at 70.55% versus 62.7% over the last six months
Domestic demand was weaker at 17.17% versus 19.1% six month average as foreign demand outstripped the domestic demand.
Dealers were saddled with a small 12.29% of the issue versus the average of 18.1%.
The bid the cover was not stellar at 2.36x indicative of perhaps less domestic demand.